Rex Energy Borrowing Base Re-Affirmed for $190M, 2nd Time in 3 Mos.

Three months ago MDN told you that Rex Energy’s bankers had reaffirmed the company’s “borrowing base” as being worth $190 million (see Rex Energy’s $190M Borrowing Base Reaffirmed by Bankers). Rex is a pure play driller focused on the Marcellus/Utica. A company’s borrowing base is the value of its assets–in this case the value of the leases and oil/gas wells Rex owns. Those assets are used as collateral to back up loans and IOUs. Rex has plenty of both (see Rex Energy Swapping $631M in Private IOUs for Public IOUs). Three months later and once again Rex’s banks are saying those assets are still worth $190 million. Usually banks reevaluate the borrowing base every six months. For some reason they felt it necessary to do it sooner. However, in yesterday’s announcement from Rex, the company mentions that the next redetermination will happen in April 2017–six months from now. Must be the bankers are getting more comfortable with Rex’s finances…